36 small business ideas plus side hustles to try

Published Tuesday 24 February 2026

Table of contents

• Benefits of starting a small business
• What makes a good small business idea?
• How to choose the right small business idea
• List of small business ideas
• List of side-hustle ideas
• How to assess your small business idea
• How to execute your idea
• Manage your small business finances with Xero
• FAQs on small business ideas

Key takeaways

• Evaluate potential business ideas against six key criteria: market demand, competitive advantage, low startup costs, profit potential, scalability, and alignment with your skills and interests.
• Start with an honest self-assessment of your skills, budget, timeline, and goals before choosing a business idea, as the best opportunity for someone else may not suit your specific situation.
• Consider launching your business as a side hustle first to test market demand and reduce financial risk, since many successful businesses start this way with lower upfront investment.
• Focus on service-based businesses that use your existing skills if you want the easiest entry point, as these typically require minimal startup capital and can begin generating income quickly.

Benefits of starting a small business

Starting a small business gives you control over your working life and the chance to build something of your own, with one survey showing that 28% of entrepreneurs were motivated by being ready to be their own boss. Here are the key benefits:

• Autonomy: you decide how the business runs
• Flexibility: you can set your own hours
• Ownership: you build equity in something you've created

Before diving in, consider these realities:

• Time commitment: running a business often takes more hours than a day job
• Income variability: earnings can be unpredictable in the first few years
• Fit matters: your idea needs to match your skills, personality, and financial situation

What makes a good small business idea?

A good small business idea solves a real problem for customers while fitting your skills, budget, and goals. Before committing time and money, evaluate any idea against these six criteria:

• Meets market demand: people actively want or need what you're offering
• Offers competitive advantage: you can differentiate from existing options
• Has low startup costs: you can launch without major upfront investment; in fact, 58% of businesses launched with less than $25k
• Shows profit potential: the numbers work after accounting for expenses
• Can scale as you grow: the business model supports expansion over time
• Matches your skills and interests: you have (or can learn) what's needed to succeed

Ideas that tick most of these boxes give you the strongest foundation. In the next section, you'll learn how to assess which ideas fit your specific situation.

How to choose the right small business idea

Choosing the right business idea starts with honest self-assessment. The best idea for someone else may not suit your situation. Follow these five steps to narrow your options:

1. Assess your current skills and experience. List what you're good at and what you've done professionally. Ideas that build on existing strengths are faster to launch and easier to market.
2. Define your business goals. Are you looking for full-time income, a side hustle, or long-term wealth? Your goals shape which ideas make sense.
3. Determine your budget and timeline. Be realistic about how much you can invest and how quickly you need income. Some ideas require minimal startup costs while others need significant capital.
4. Decide between online and physical business models.Online businesses often have lower overheads and wider reach. Physical businesses can build stronger local relationships. Consider which suits your lifestyle.
5. Research your local market. Check what's already available in your area. Look for gaps you could fill or ways to do something better than existing options.

List of small business ideas

Here are 36 proven business ideas that people are successfully running today. Each can be started with modest investment and scaled over time.

Inventor

Inventor businesses turn your product ideas into reality. You don't need to create something revolutionary. A modest improvement to an everyday item can find a market.

Hire designers to create drawings, then use contract manufacturers or 3D printers to produce inventory. Online retail and digital marketing make it easier to reach niche customer groups cost-effectively.

Franchisee

Franchising lets you run a business using an established brand's name, products, and systems, and its popularity is on the rise, with the number of franchisees growing by approximately 12 percent in one year. You pay the parent company (franchisor) a fee to open a location in their name.

In return, you get access to their branding, products, and operational know-how. Many franchisors also provide business advice, training, and sometimes financing.

Costs and support levels vary widely. Franchise opportunities exist across industries, from restaurants and consulting to cleaning services. Learn more about franchising.

Transcription

Transcription involves converting audio recordings into written text. Work includes meeting notes, court reporting, and closed captioning for television and movies.

You'll need strong typing skills and an excellent ear for what people are saying. Demand remains steady as businesses and media companies continue producing audio and video content.

Virtual assistant

Virtual assistants provide remote administrative support to entrepreneurs, consultants, and small business owners. Demand continues growing as more professionals work online, and companies benefit from this model, as organisations that operate remotely experience 25% less turnover.

Typical tasks include:

• Managing schedules and calendars
• Setting up meetings
• Reading and responding to emails
• Taking notes and organising documents

The work can be challenging but pays well, especially once you build strong client relationships.

Cleaning services

Cleaning services offer a low-cost entry point into business ownership. The sector continues growing, especially for providers offering environmentally sustainable options.

Success requires good planning, high standards, and a strong reputation. Both residential and commercial customers provide steady demand.

Coffee cart or food truck

Coffee carts and food trucks let you enter hospitality with lower overheads than a fixed location. You can test different areas, build a following, and scale up when ready.

The work is competitive but rewarding. Beyond serving food, you contribute to your neighbourhood's sense of community.

Catering

Catering suits talented cooks and bakers who want to run a food business without a restaurant. A clean kitchen is all you need to get started.

Working from advance orders lets you plan inventory and workflow efficiently. You can focus on niches like:

• House dinner parties
• Office events
• Pastry and baked goods
• Order-in sandwiches and lunches

Online selling

Online selling offers lower running costs and better margins than physical retail, especially in the early years, and the market is expanding rapidly; the global value of social commerce is projected to hit nearly $3 trillion by 2026. You can launch a store relatively simply using ecommerce platforms.

Sell your own products, stock known brands, or combine both approaches. Learn how to start an online business.

Dropshipping

is online retail without handling inventory. You list products in your store, but goods stay in the supplier's warehouse until customers order. The supplier then packs and ships directly to your customer.

This model offers several advantages:

• No upfront inventory investment
• No need for storage space
• No logistics to manage

The simplicity makes dropshipping ideal for beginners. However, you can face challenges if suppliers have stock issues or customers need product support. Choose a reliable dropshipping supplier to minimise these risks.

Sell a digital product

Digital products are items delivered electronically, requiring no physical storage or shipping. This makes the business model lightweight and scalable.

Examples include:

• Ebooks and guides
• Templates and design assets
• Music, jingles, and sound effects
• Images and videos
• Online courses and tutorials

You'll need to create original products or buy licenses to sell existing ones.

Affiliate marketing

Affiliate marketing earns you commission by referring readers to shopping sites. When someone clicks your link and makes a purchase, you receive a percentage of the sale.

Success requires:

• A sizeable audience
• Content that naturally connects to products (travel, crafts, parenting, cooking)
• Patience to build traffic over time

Building affiliate income takes time, but the industry is currently worth around $17 billion and growing, with established marketers earning substantial incomes.

Personal trainer

Personal trainers help clients achieve their fitness goals through customised exercise programmes and motivation. The work improves people's health, energy, and confidence.

You'll need knowledge of how the body works to train clients safely. Certification programmes can help you build these skills.

The market includes clients of all ages with varied goals, and with studies showing 90% of Americans who exercise will continue to do so at home even with gym access, opportunities for online coaching are strong. There's room to find a niche that suits your interests.

Life coach

Life coaches (or wellbeing coaches) help clients find balance and fulfilment. Through exercises and guided discussions, you help people develop new perspectives on their priorities.

Clients often feel stretched between family and career demands, or sense they're missing the bigger picture. Your work can lead to significant life changes, so approach this career seriously.

Training courses can help you build the skills needed to support clients effectively.

Handyman/contractor

Handyman and contractor work offers steady demand regardless of location. If you're good with tools and enjoy fixing things, this business suits you well.

Services can range from minor repairs and maintenance to larger renovation projects, depending on your skills and licensing.

Landscaping and lawn care service

Landscaping and lawn care has a low barrier to entry. Basic services like mowing, pruning, and weeding require minimal training to start.

As you grow, clients may ask for advice on trees, soils, watering systems, and fertilisers. Training helps you expand into these higher-value services.

Target customers include:

• Private homeowners
• Landlords and property managers
• Holiday home owners
• Commercial properties
• Public spaces and councils

Construction

Construction trades offer stable demand. New housing projects and home renovations keep skilled tradespeople busy regardless of economic conditions.

If you know carpentry, joinery, plumbing, or electrical work, you can find your niche. Specialisations include door installation, staircase building, patio construction, and many more.

Manufacturing, engineering and fabrication

Manufacturing, engineering, and fabrication businesses serve local markets with specialised products or components. Skilled engineers, builders, and welders can build boutique operations.

Equipment and materials can be costly, so focus on a few core products or tasks to start. Contract work for other local businesses provides steady revenue.

Success requires strong communication skills to understand customer requirements. Design or technical drawing abilities also help.

Consulting

Consulting turns your expertise into a service business. Both households and businesses pay for independent advice in areas where they lack knowledge.

Residential consulting options include:

• Interior design
• Home budgeting and financial planning
• Renovation project management

Business consulting options include:

• Project management
• Research and analysis
• Editing and communications

Explore what's needed in your community, then develop skills to meet that demand.

Business advisor or troubleshooter

Business advisors help growing companies identify opportunities, overcome challenges, and unlock growth. Your industry experience becomes the product.

This role suits people who are experienced, analytical, and skilled communicators. You'll work closely with business owners to solve problems and guide decisions.

Webmaster

Webmasters manage websites for small businesses that lack technical skills. Many business owners know they need a website but don't know how to maintain one.

Core services include:

• Keeping sites secure and updated
• Implementing content changes
• Basic SEO (search engine optimisation)

You can expand by adding ecommerce setup and digital marketing services.

Digital marketer

Digital marketing helps small businesses reach target audiences affordably. Most business owners don't understand how it works, creating opportunity for specialists.

As a digital marketer, you can run social media advertising campaigns, manage search engine marketing, and help businesses grow their online presence.

Freelance copywriter

Freelance copywriters create written content for businesses. Demand spans many formats, making it easy to find work that suits your strengths.

Common projects include:

• Website copy
• Blog posts and articles
• Emails and newsletters
• Social media posts
• Advertisements and campaigns

Specialising in one or two areas increases your speed and earning potential per hour.

Freelance designer

Freelance designers find work across many industries and project types. Your specialty determines which opportunities fit best.

Project examples include:

• Newsletter layouts for local councils
• Certificates and awards for schools and clubs
• Websites, flyers, and business cards for small businesses
• Overflow work from design agencies

Build a strong online portfolio to attract clients. Success also requires good time and cost budgeting skills.

Photographer

Photography businesses capture important moments for clients, from weddings and events to portraits and commercial shoots. Visually-minded creatives often find this work rewarding.

The stakes are high since you're recording once-in-a-lifetime events. You'll need the right temperament to handle pressure and deliver consistently.

Equipment costs can be significant, though keen hobbyists may already own suitable gear.

Clothing boutique

Clothing boutiques let you enter the fashion industry with various approaches. The second-hand market continues growing as consumers become more eco- and cost-conscious.

Business model options include:

• Recycling and upcycling clothing
• Reselling vintage or second-hand items
• Importing hard-to-find labels and styles

You can operate online, in a physical store, or combine both channels.

Clothing label

Clothing labels let you design and sell your own fashion products. You can manufacture items yourself or work with contractors who follow your designs.

Specialist niches include:

• Sportswear and activewear
• Maternity clothing
• Baby and children's wear
• Sustainable and fair-trade fashion

Start with one or two product lines to test market demand before expanding.

Beauty business

Beauty businesses serve steady demand from people who want to look and feel their best. While big players and celebrity brands dominate the mainstream, niche opportunities remain.

Differentiate by developing your own grooming or beauty philosophy, then curate products that align with it. You can create products from scratch or source them from craft suppliers.

Target customers who want something different from mass-market options.

Pet care

Pet care serves a growing market of over 1 billion pets worldwide, with ownership rising among millennials. Many pet owners need help caring for their animals.

Service options include:

• Dog walking
• Pet grooming
• In-home pet sitting while owners travel
• Pet accessory retail

Look for gaps in your local market to find your niche.

Podcasting

Podcasting works best as a marketing platform rather than a standalone business. Thousands of professional podcasts already compete for listeners.

Your best approach is finding a niche topic where you offer unique insights. Use the podcast to build an audience, then monetise through:

• Training programmes
• Educational resources
• Consulting services
• Sponsorships (once you build significant listenership)

Print-on-demand

Print-on-demand lets you sell custom merchandise without holding inventory. A third-party printer produces and ships items only when customers order.

You design products like mugs, cushions, t-shirts, and calendars. The printer handles production and fulfilment. This model requires minimal upfront investment since you don't buy equipment or stock.

Printer

Printing services let you produce custom products for clients using your own equipment. You take orders and handle production directly.

Popular products include:

• Custom cards and invitations
• Flyers and marketing materials
• T-shirts and apparel

Adding design services increases your value and earning potential per order.

Teaching online courses

Teaching online courses turns your expertise into scalable income. Platforms like Udemy make it simple to create and sell courses on almost any topic.

Demand for online learning remains strong as people value self-paced education. If you're an excellent communicator with specialist knowledge, this model lets you teach many students simultaneously.

Tutor

Tutoring serves learners from primary school through university, providing a wide customer base. You can earn steady income while helping students achieve their academic goals.

Focus on subjects where you have strong knowledge. Building a reputation for results leads to referrals and repeat clients.

Teach languages

Language teaching helps people communicate in new countries or expand their career opportunities. Demand remains steady as globalisation continues.

You don't necessarily need to speak multiple languages. Native speakers can teach their own language to learners. Patience and encouragement matter most since students will struggle at times.

Training and certification programmes help you develop effective teaching methods.

Childcare

Childcare businesses range from working with one family as a nanny or au pair to serving multiple families through after-school care programmes.

Business model options include:

• In-home nanny services for individual families
• Au pair arrangements
• Neighbourhood after-school care
• Holiday programme supervision

Check local health, safety, and licensing requirements before caring for children outside their family home.

App developer

App developers with coding and UX skills find steady freelance work. Businesses increasingly need mobile and web applications but lack in-house development teams.

Work sources include:

• Direct contracts with businesses
• Overflow projects from development agencies
• Your own app ideas developed on the side

Strong technical skills and a portfolio of completed projects help you win clients.

List of side-hustle ideas

Many successful businesses start as side projects because this approach lets you test ideas with lower financial risk. The ideas below work well around full-time employment, requiring minimal startup investment and offering flexible scheduling.

Side hustles are businesses you run alongside a day job for supplementary income. Each requires minimal startup investment and offers flexible scheduling.

Join a focus group or take surveys

Focus groups and surveys pay you to share opinions on products and services. Marketing companies recruit participants to test new offerings before launch.

Activities include:

• Sampling food and beverages
• Previewing TV shows and advertisements
• Answering questions about buying habits

Provide constructive feedback to get invited back. Sign up with multiple research companies to increase earning opportunities.

Mystery shopping

Mystery shopping pays you to evaluate retail experiences. You visit stores as a regular customer, then report on service quality, store conditions, and staff behaviour.

Demand varies by location, so check what's available in your area. The work offers insight into how successful brands create positive customer experiences.

Rent your spare room

Renting your spare room generates income from unused space in your home. Platforms make it easy to find short-term guests or longer-term boarders.

Requirements:

• Home ownership (or landlord permission)
• A spare room suitable for guests
• Comfort sharing your space with others

The work suits people who enjoy meeting new people and can provide a welcoming environment.

Rent out your car

Renting out your car turns an idle vehicle into income. Peer-to-peer car rental platforms connect you with people who need temporary transport.

Before listing your vehicle:

• Upgrade your insurance to cover guest drivers
• Verify renters hold valid licences
• Set clear terms for vehicle use and condition

The income can offset ownership costs for vehicles you don't use daily.

Gig work

Gig work offers maximum flexibility since you choose when and how much you work. Apps like TaskRabbit, Uber, and DoorDash connect you with short-term tasks.

Common gigs include:

• Rideshare driving
• Food and grocery delivery
• Errands and odd jobs

Factor in your costs before calculating earnings. Fuel, vehicle maintenance, and platform fees reduce your take-home pay.

Deliver groceries or food

Grocery and food delivery provides straightforward side income with low barriers to entry. Apps handle customer acquisition and payment processing.

Keep realistic expectations:

• Vehicle costs (fuel, maintenance, insurance) reduce net earnings
• Scaling to full-time income is difficult
• Works best as supplementary pocket money rather than primary income

Flipping items for profit

Flipping items for profit means buying products at low prices and reselling them for more. The internet makes it easier to find deals on one platform and sell on another.

Success requires:

• An eye for undervalued items
• Research skills to identify profitable opportunities
• Patience to find the right deals

Expect some losses along the way. Not every purchase will sell at your target price.

Handmade crafts

Handmade crafts let you monetise creative skills through online marketplaces and local fairs. Platforms like Etsy connect artisans with buyers seeking unique, handcrafted items.

Popular product categories include:

• Jewellery and accessories
• Candles and soaps
• Screen-printed apparel
• Woodwork and furniture
• Pottery and ceramics
• Art and prints

Partnering with other artisans lets you offer complementary products and share marketing efforts.

Blogging

Blogging can build to full-time income for skilled writers, though it takes time to gain momentum. Several monetisation paths exist.

Revenue options include:

• Per-read payments on platforms like Medium
• Paid subscriptions through Substack
• Sponsored content and affiliate links
• Advertising revenue (once traffic grows)

Expect a slow start. Building an audience takes consistent effort, but breakthrough content can accelerate growth significantly.

How to assess your small business idea

Before investing time and money, test your business idea against key criteria to identify potential weaknesses early. This process helps you make informed decisions about moving forward.

Assessing your business idea means stress-testing it before investing time and money. Ask these seven questions to identify weaknesses early.

1. Do you have the skills? You'll likely do all the work yourself at first. If you lack key skills, consider partnering with someone who has them.
2. Do you have the passion? Hard work and setbacks lie ahead. Passion for your work provides the energy to push through challenges.
3. Do you have the time right now? Businesses demand significant attention. If you can't prioritise it now, consider waiting until you can.
4. Do you have the cash?Calculate startup and first-year operating costs. If funding falls short, start as a side hustle or launch online to reduce expenses.
5. Will it make money? Calculate your direct costs and research competitor pricing. Confirm a sustainable profit margin exists.
6. How will it grow? Plan how you'll increase profitability over time. Ensure you can grow sales while maintaining or improving margins.
7. Can you compete? Research your competition and identify a realistic path to winning market share.

How to execute your idea

Once you've chosen and assessed your business idea, it's time to turn it into reality. Taking action on your plan is where the real work begins.

Executing your business idea requires planning, resources, and consistent action. Start by creating a detailed business plan that outlines your strategy, target market, and financial projections. Register your business legally, set up proper accounting systems, and establish your brand presence.

Focus on launching a minimum viable product or service first, then gather feedback and improve over time. Build relationships with customers and suppliers. Track your finances carefully from day one using accounting software to monitor cash flow and profitability.

Stay flexible and ready to adapt as you learn what works in your market. Most successful businesses evolve significantly from their original plan based on real-world experience.

Manage your small business finances with Xero

After you've decided on the small business you'd like to start, you'll need a way to manage the finances for your new business.

Xero accounting software streamlines your business accounting with automated bookkeeping, bank connection, and tailored reports for your business needs. Get one month free and see how easy it can be.

FAQs on small business ideas

Here are answers to common questions about choosing and starting a small business.

What is the easiest business to start?

Service-based businesses that use your existing skills are typically easiest to start. Examples include consulting, virtual assistance, tutoring, cleaning services, or freelance writing. These require minimal upfront investment and can begin with just your time and expertise.

What small business is most profitable?

Profitability varies by execution, but businesses with low overheads and high margins tend to perform well. Digital products, consulting, online courses, and specialised services often deliver strong returns. The most profitable business for you builds on your existing skills and meets genuine market demand.

How much money do I need to start a small business?

Startup costs vary widely depending on your chosen business model. Many online and service-based businesses can launch with less than £1,000. Physical retail or manufacturing businesses may require £10,000 to £50,000 or more. Start by calculating your specific costs for equipment, inventory, licenses, insurance, and marketing.

Should I start my business online or offline?

This depends on your product, target customers, and personal preferences. Online businesses typically have lower overheads and broader reach, while physical businesses build stronger local relationships. Many successful businesses combine both channels. Consider starting online to test demand before investing in physical premises.

How long does it take to make money from a small business?

Most businesses take six months to two years to become profitable. Service businesses often generate income faster than product-based businesses. Timeline depends on your startup costs, pricing strategy, marketing effectiveness, and how much time you can dedicate. Starting as a side hustle reduces financial pressure during the early phase.